IES Management College And Research Centre

Demonetisation : Move towards Cash Less Economy.

Aggarwal, Monika

Demonetisation : Move towards Cash Less Economy. - 639-654. - Finance India XXXIII(3). .

An attempt has been made to highlight the impact of demonetization on the growth of digital payments in India. This move is expected to cleanse the economic system from the evil of black money. The attempt has also been made to lower the circulation of cash in the economy and encourage the use of digital payment methods which will lead to increase in revenue of the Government. India is on cusp of financial revolution as large number of measures is being taken to move from cash dependent economy to cash less economy. At present only 5% personal consumption expenditure in India is digital. After demonetization, mobile wallets saw the highest percentage increase in the value of transactions among the digital payment methods. Transactions using the newly introduced UPI have increased from 90 crore in November 2016 to 1,659 crore in January. 125 lakh people have adopted the BHIM app so far. Government has a Mission toachieve target of 2,500 crore digital transctions for 2017-18 through UPI, USSD, Adhar Pay, IMPS and debit cards.

*Money laundering Economic systems Payment Debit cards Government revenue

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